ibnlive » Business

Aug 08, 2006 at 11:00am IST

India, Pak World Bank’s top borrowers

Washington: India and Pakistan were among the 10 largest World Bank borrowers as its lending commitments to South Asia reached $3.8 billion in the 2006 financial year that ended on June 30.

India received $1,416 million, or 6 per cent of all loans, grants and credits by the Bank's two close affiliates - the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), according to a World Bank press release.

Pakistan's share was a little higher at 6.3 per cent with $1,498 million.

BANKING ON THE WORLD: India received $1,416 million, or 6 per cent in loans, grants and credits. (IBN)

South Asia accounted for 16 per cent of a total of $23.6 billion committed by the bank, up by $1.3 billion or 6 per cent over the previous year.

Overall, the highest share of $5.9 billion or 26 per cent went to Latin America and the Caribbean region. Africa followed with $4.8 billion or 20 per cent of total lending commitments.

Europe and Central Asia had 17 per cent with $4 billion; South Asia 16 per cent with $3.8 billion; East Asia and the Pacific had 14 per cent with $3.4 billion, while the Middle East and North Africa region had 7 per cent with $1.7 billion.

Mexico and Brazil were the largest borrowers, followed by Turkey, Pakistan, China, India and Argentina.

The commitments of IDA, set up in 1960 to provide interest-free credits and grants to countries with little or no capacity to borrow on their own, reached a record $9.5 billion, a 9 per cent rise compared to the 2005 fiscal year.

For IBRD - which aims to reduce poverty in middle income and creditworthy poorer countries through loans, guarantees as well as analytical and advisory services - commitments in fiscal 2006 rose by 4 per cent to $14.1 billion, its highest in seven years.